Warning: pensioners are sitting ducks for modern fraudsters
THE South African Banking Services Ombudsman says the digital climate in South Africa has made it prime hunting grounds for the modern fraudster, and pensioners are sitting ducks.
Some 640 new fraud complaints have been recorded over the past few months, despite regular warnings to the public about financial scams, banking ombudsman Reana Steyn said in a statement.
Fraudulent phone calls, known as vishing, have taken over from previous “phishing'' scams which were prevalent just a couple of years ago.
“What is very clear from the cases that have been received and investigated by the OBS is that anyone and everyone can be a target,” said Steyn.
“However, the devastation caused by these scams to elderly citizens and pensioners (some of the most vulnerable members of society), is beyond heart-breaking.”
In most cases, it is not possible for the victim to recover their funds, resulting in an already vulnerable group of people being left without any recourse.
“This often leads to destitution. While this fraud may be crippling to a person who is working, at least they have an opportunity to rebuild their savings. We have had cases where an elderly person’s entire pension is stolen due to the fraud and there is no way, or time, for an 80-year-old pensioner to make up the loss,” Steyn added.
Unless the money is stolen at the bank or lost through the fault of an employee or a technological glitch at the bank, it is ultimately up to consumers to do all they can to protect themselves by staying informed about banking scams.
With the country’s cyber security levels already being relatively weak, the Covid-19 pandemic has added pressure on the financial sector to tighten things up.
To lower the risk of contracting the virus, many residents have opted to conduct their shopping, banking and other activities online. This has given fraudsters in South Africa an even bigger target to aim at over the past year and a half.
A report measuring fraud for 2020 compiled by the Southern African Fraud Prevention Service (SAFPS) showed sharp rises in the Eastern Cape and Gauteng provinces of 161 percent and 120 percent respectively.
Earlier this year there were increases in fraudulent activities in every South African province except Limpopo, SAFPS chief executive officer Manie van Schalkwyk said.
Fraudulent listings increased by 62 percent, while victim listings were up 52 percent, the SAFPS report showed.
The biggest cause for concern is impersonation fraud, which saw an increase of 337 percent, van Schalkwyk said.
In this type of fraud, the perpetrator has the victim’s personal details and opens an account without their consent or knowledge. Due to the radical advancement in technology, faking an application is easier than ever, Van Schalkwyk added.
The only way for consumers to protect themselves against these types of threats is to become aware of them and educate themselves, banking ombud Steyn said. “If we are ever going to make headway against these fraudsters, we need to become smarter.”